Brussels, Jun. 6 - The European Union has signed a deal with Australia to restrict the country's use of names such as champagne and port.
The deal, which updates a 1994 pact, also outlines labeling requirements for Australian wines exported to the E.U., including indications for the type of grape used and any awards the wine has won.
Labeling has led to the E.U. into several international trade disputes. Names such as champagne and port have been used on similar products in places such as California, South Africa and Australia. The E.U. has struggled to restrict the use of these names, claiming they should only apply to champagne made in France and port wines from Portugal.
In 1999, South Africa was forced to stop marketing their fortified wines as ports or sherries after Portuguese and Spanish producers complained. Talks with the U.S. about restricting the use of such specific names are still ongoing, according to the European Commission's agriculture spokesman Michael Mann.
Under the deal with Australia, which still needs final approval from E.U. member countries and Australian authorities, Australian wineries will stop calling their wines champagne and port within a year. Australian producers will also stop identifying their wines as hermitage and lambrusco, two grape types native to Europe.